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Customer Relationship Management (BMS).

PROJECT REPORT

ON

CUSTOMER RELATIONSHIP MANAGEMENT IN BANK


REFERENCE TO ICICI BANK

BACHELOR OF MANAGEMENT STUDIES

(SEMESTER V)

PREPARED BY:

SWAPNIL GAWALI
ROLL NO:1625003
UNDER THE GUIDANCE OF

PROF. ANJU CHHABRIA

SHRI SIDH THAKURNATH COLLEGE OF ARTS & COMMERCE


ULHASNAGAR - 421004.

UNIVERSITY OF MUMBAI
2016-2017

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Customer Relationship Management (BMS).

DECLARATION

I, SWAPNIL GAWALI student of TYBMS (Bachelor of Management


Studies) hereby declare that I have completed the Project on
CUSTOMER RELATIONSHIP MANAGEMENT IN BANK
REFERENCE TO ICICI BANK in the academic year 2016-17.

The information submitted is true and original to the best of my


knowledge.

(SWAPNIL GAWALI)
{T.Y.BMS}

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Customer Relationship Management (BMS).

ACKNOWLEDGEMENT
My project is a result of the inspiring and thoughtful guidance and supervision of
my project guide PROF. ANJU CHHABRIA, I am deeply indebted to her
whose help, time, support, inspiration, stimulating suggestions and
encouragement helped me in all the times of research and writing of this report.
This project has widened my horizon to various areas under general knowledge
regarding the practical and real aspects of CUSTOMER RELATIONSHIP
MANAGEMENT IN BANK REFERNCE TO ICICI BANK.

I whole heartedly thank all the concerned people at college as well as at


university level, who have given me the chance for preparing this valuable
project.
I would further like to thanks our Principal Sir Dr. J.C. Purswani for giving me
an opportunity to complete our Project
Last but not least, this Project has definitely helped me to achieve something,
which will be useful to us in near future and hence I am thankful to all persons
who have helped in knowledge.

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Customer Relationship Management (BMS).

OBJECTIVES OF STUDY

To analyze the CRM practices in ICICI Bank.

To research and an applied sampling in selecting ICICI bank in Thane and Mumbai.

To primary data is collected through structured.

The secondary data for the study from annual report of banks, bulletins and policy
guidelines of RBI and other related websites, journals, magazines and books.

Offering better customer services.

Retaining existing customer and discovering new ones.

Lower level of operating cost.

Aiding the Market Department.

Providing services and products that are exactly what your customer want.

Implementation of CRM helps in determination of objectives, audience, and ways to


accomplish those goals and how to measure the success of its effectiveness.

The idea of CRM is that it helps business use technology and human resources to gain
insight into the behavior of customer and the value of those customers.

SIGNIFICANCE OF THE STUDY

The CRM (customer relationship management) is an integrated effort to strengthen the


network of relationship for the mutual benefit of both the parties. The biggest
management challenge in the new millennium of liberalization and globalization for
a business is to maintain good relationship with the king the customer. This study is
of great significance because

A 5% increase in the customer retention will increase the profit up to 125%.


To study on customer relationship management would enable the researcher to
know about the CRM practices adopted in the banking sector.

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Customer Relationship Management (BMS).

EXECUTIVE SUMMARY

The biggest management challenge in the new millennium of liberalization and


globalization for a business is to serve and maintain good relationship with the king the
customer. In the past producers took their customers for granted, because at that time the
customers were not demanding nor had alternative source of supply or suppliers. But
today there is a radical transformation. The changing business environment is
characterized by economic liberalization, increasing competition, high consumer choice,
demanding customer, more emphasis on quality and value of purchase etc.

All these changes have made todays producer shift from traditional marketing to modern
marketing. Modern marketing calls for more than developing a product, pricing it,
promoting it and making it accessible to target customer. It demands building trust, a
binding force and value added relationship with the customers.

Driven by challenges on competition, rising customer expectation and shrinking margins,


banks have been using technology to reduce cost. Apart from competitive environment,
there has been deregulation as to rate of interest, technology intensive delivery channel
like Internet Banking, Tele Banking, Mobile banking and Automated Teller Machines
(ATMs) etc have created a multiple choice to user of the bank. The banking business is
becoming more and more complex with the changes emanating from the liberalization
and globalization. For a new bank, customer creation is important, but an established
bank it is the retention is much more efficient and cost effective mechanism.

Today, many businesses such as banks, insurance companies, and other service providers
realize the importance of Customer Relationship Management (CRM) and its potential to
help them acquire new customers retain existing ones and maximize their lifetime value.
At this point, close relationship with customers will require a strong coordination
between IT and marketing departments to provide a long-term retention of selected
customers. This project deals with the role of Customer Relationship Management in
banking sector and the need for Customer Relationship Management to increase customer
value by using some analytical methods in CRM applications.

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INDEX

Sr. No Content Page No.


1 INTRODUCTION OF CRM
1.1 Introduction of CRM 07-07
1.2 Definition CRM 08-08
1.3 Elements of CRM 08-08
1.4 Key Components of CRM 08-10
1.5 Need Of study of CRM 11-11
1.6 Importance of study of the CRM 11-12
2 REVIEW OF LITERATURE 13-14
3 PRINCIPLE OF CRM
3.1 Key components of CRM 15-15
3.2 CRM Process 15-16
3.3 CRM Technology 16-16
3.4 CRM People 16-16
3.5 CRM Principle Differentiate Customer 16-17
3.6 Summarizing CRM Activity 17-18
4 OBJECTIVES & CHARACTERISTICS OF STUDY OF CRM
4.1 Objectives 19-19
4.2 CRM is System 19-19
4.3 Characteristics of CRM Maturity Poor Level 19-21
4.4 Characteristics of CRM Maturity Average Level 21-21
4.5 Characteristics of CRM Maturity- Excellent Level 21-22
5 MARKETING AND CUST OMER SERVICES
5.1 Benefits of CRM for Marketing 24-24
5.2 Benefits of CRM for Sales 24-24
5.3 Basis for providing direction for CRM Strategy 24-24
5.4 CRM in Customer Contact Centers 25-25
6 SOFTWARES OF CRM
6.1 Guidelines in Implementing a CRM System. 26-26
6.2 SSAS CRM Software 27-27
6.3 Small Business 27-27
6.4 Social Media 27-27
6.5 Non- Profit & Membership Based 27-27
7 CUSTOMER CENTRIC RELATIONSHIP MANAGEMENT (CCRM)
7.1 Introduction of CCRM 29-29
7.2 Features of CCRM 29-29
7.3 Cam Paradox 30-30
7.4 Trends 31-31
8 CRM OF ICICI BANK
8.1 Introduction of ICICI Bank 33-33
8.2 History of ICICI Bank 34-35
8.3 Acquisition 35-36
8.4 ICICI Role in India Financial Infrastructures 36-38
8.5 Products of ICICI Bank 38-41
8.6 Awards of ICICI Bank 41-42
8.7 CRM in ICICI Bank 43-45
8.8 Benefits Of CRM 46-48
Annexures 49-64
* Finding of CRM & SUGGESTIONS OF THE STUDY 65-66
CRM SOLUTIONS 67-67
* CONCLUSION 68-68
* BIBLIOGRAPHY 69-69
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CHAPTER 1.
INTRODUCTION OF CRM

1.1 Introduction to CRM

Organisations worldwide are adopting customer centric strategies, programs, tools and
technology for efficient and effective customer relationships.

Companies are realising the need for in-depth and integrated customer knowledge in order to
build close cooperative and partnering relationships with their customers

CRM tools promise to individualise and personalise the relationships with customers by
providing vital information at every point in the interface with the customer

Techniques deployed in CRM initiatives


collaborative filtering,
rule based expert systems
Artificial intelligence
Relational databases

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1.2 Defining CRM

Way to identify, acquire and retain customers


Way of automating the front office functions of sales, marketing and customer service
CRM has diverse definitions on the basis of diverse perspectives which includes Business
perspective, Sales Force & Customer Service Automation perspective and thirdly, integrated
and technology enabled CRM.

CRM is thus a strategic use of information, processes, technology and people to manage the
customers relationship with the organisation across the whole customer life cycle.

1.3 Main Elements of CRM Definition

CRM is a total discipline

CRM Uses

Machine CRM technology

Power People

To Turn Raw material customer information

Into Products Processes and interactions that build customer loyalty

1.4 Key Components of CRM

InformationIt is a key raw material for CRM. The key steps include data identification,
marketing data, listing of data and overlay of data.

ProcessCustomer centred processes are the product of CRM

TechnologyIt is the machinery that enables CRM to Work

PeoplePeople are the energy source of the CRM and must be set right for the entire system to
work.

Marketing Data Descriptions, traits, preferences

List data Name and address collected by third party which can be bought or leased

Overlay data Customer profile data collected by a third party which can be leased and
appended to existing customer records

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CRM is a sound business strategy to identify the banks most profitable customers and
prospects, and devotes time and attention to expanding account relationships with
Banking Industry in India has undergone a rapid changes followed by a series of
fundamental developments. Those customers through individualized marketing, re-
pricing, discretionary decision making, and customized service-all delivered through the
various sales channels that the bank uses. Under this case study, a campaign management
in a bank is conducted using data mining tasks such as dependency analysis, cluster
profile analysis, concept description, deviation detection, and data visualization. Crucial
business decisions with this campaign are made by extracting valid, previously unknown
and ultimately comprehensible and actionable knowledge from large databases. The
model developed here answers what the different customer segments are, who more
likely to respond to a given offer is, which customers are the bank likely to lose, who
most likely to default on credit cards is, what the risk associated with this loan applicant
is. Finally, a cluster profile analysis is used for revealing the distinct characteristics of
each cluster, and for modeling product propensity, which should be implemented in order
to increase the sales.

Customer Relationship Management (CRM) is an intelligent blend of marketing and


information technology for serving the customers with greater care and value. CRM is a
process of identifying, attracting, differentiating and retaining customers. It is a
comprehensive approach for creating, maintaining and expanding customer relationship.
CRM is the outcome of the continuing evolution and integration of marketing ideas and
newly available data, technologies and organizational approaches. Bank as a service
organization have excellent reasons to adopt a comprehensive CRM strategy. Customer
needs, wants, desires keep changing day by day.

Therefore it is necessary for the banks to adopt the changes in the market through
tracking the customer wants and the needs. This is possible only when the organization
has a close contact with its customers. Since customer is the life blood of any business
organization and customer creation cost is costlier than customer retention cost, thus
bank adopt CRM techniques for maintaining

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life relationship and by which they ensures customer loyalty and retention. Thus the
banking sector moves from a transaction centric to a relationship centric business
approach by focusing through build good relationship and the profitable transaction
will follow automatically.

Customer relationship management is creating a team relationship among sales,


marketing, and customer support activities within an organization. Another narrow, yet
relevant, viewpoint is to consider CRM only as customer retention in which a variety of
after marketing tactics is used for customer bonding or staying in touch after the sale is
made. Shani and Chalasani define relationship marketing as an integrated effort to
identify, maintain, and build up a network with individual consumers and to continuously
strengthen the network for mutual benefit of both sides, through interactive,
individualized and value-added contacts over a period of time.

The core theme of all CRM and relationship marketing perspectives is its focus on co-
operative and collaborative relationships between the firm and its customers, and/or other
marketing actors. CRM is based on the premise that, by having a better understanding of
the customers needs and desires we can keep them longer and sell more to them.

There are three parts of application architecture of CRM:

operational - automation to the basic business processes (marketing, sales,


service)
analytical - support to analyze customer behavior, implements business
intelligence alike technology
Co operational - ensures the contact with customers (phone, email, fax, web...)

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1.5 NEED OF THE STUDY OF CRM

The banking sector is entering a new world and exciting developments are changing the
face of banking. The globalization of banking operations along with high competition,
continuing deregulation and technological advancements has significantly altered the face
and scope of banking. The process of economic liberalization and finance sector reforms
has brought the issue of customer focus to the forefront. Therefore there exists a strong
need for maintaining CRM in the banks to understand the customers and to meet their
expectations. The scope of CRM is very wide including different aspects like customer
satisfaction, service quality, relationship quality, market orientation, trust, loyalty,
commitment, customer retention etc. To survive, banks have to redesign their strategy in
delivering quality services to attract and maintain customers. The only strategy that is
perceived to make sense in this emerging marketing environment requires marketers to
learn and practice CRM. This study aims to identify the areas of research in CRM with
special reference to banking industry.

1.6 IMPORTANCE OF THE STUDY OF CRM

CRM aims at focusing all the organizational activities towards developing long term
collaborative relationship with customers to develop them as lifetime customers. CRM in
banking is a key element that allows a bank to develop its customer base and sales
capacity. The goal of CRM is to manage all aspects of customer interactions in a manner
that enables banks to maximize profitability from every customer. Retaining customers is
a major concern for banking institution which shows the importance of CRM. Banks have
to come out with innovative measures to satisfy the needs of both the present and
potential customers and at the same time they must adopt procedures to bring back the
lost customers trough establishing an excellence in customer relationship. Hence the
present study has been carried out to examine the CRM techniques adopted in the ICICI
banks in Mumbai & Thane dist

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Customer Relationship Management (BMS).

(A) HOW TO INTRODUCE CRM IN THE COMPANY

There are four key steps for putting Step 1: Identify your customers

To launch a one to one initiative the company must be able to locate and contact a fair
number of customers or at least a substantial portion of its valuable customers. It is
crucial to know the customer details as much as possible, not just their names or address,
but their habits, preferences and so forth.

Step 2: Differentiating your customers

Customers are different in two principal ways, they represent different levels of value and
have different needs. Once the company identifies its customers differentiating them will
help the company to focus its efforts to gain the most advantage with the most valuable
customers.

Step 3: Interacting with the customer

Interaction is also a crucial component of a successful CRM initiative. It is important to


remember that interaction just not occur through marketing and sales channels, customer
interact in many different ways with many different areas of the organization so to foster
relationship all the areas of the organization must be accessible to the customer.

Step 4: Customize your enterprises behavior

Ultimately to lock a customer into a relationship a company must adapt some aspect of its
behavior to meet customers individually expressed needs this might mean mass
customizing a manufactured product or it might involve tailoring some aspect of the
service surrounding the product.

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CHAPTER 2
REVIEW OF LITERATURE

Kamath in his thesis entitled Marketing of bank services with special reference to
branches in Bombay city of syndicate bank has concluded that quicker and better service
offered by bank will be the most important variable in attracting and retaining customer.

S.G Shah in his article has stated that quality of customer service in bank has to very sink
to very low and poor levels because of two vastly different reasons. The first is that even
the simple routine service have broken down. The second area in which customer service
is lagging is that of special situation.

T.S Ravisankar in his study Marketing strategies and planning for business growth in
banks stressed that the marketing plan for banking service be supported by appropriate
marketing strategies. He suggests that the marketing strategy for banks must be oriented
to customer current and potential.

Knox, address that CRM is a strategic approach designed to improve stakeholder value
(the value the customer receives, the value the organization receives, and the customer
retention and its economics) through developing appropriate relationships with key
customers and customer segments and through channel and media integration (channel
and media suitability, channel and media structure, and multichannel and multimedia
integration). CRM unites the potential of IT and relationship marketing to deliver
profitable, long-term relationships.

John Brooks former president and chairman of the council of the charted institute of
Bankers, London states Customer care is emerging as a critical factor in the banking

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industry and bankers are fully conscious of the need for attaining international standard
for service.

Das Kallol, (2009) explores the association between deployment of CRM best practices
and loyalty of profitable customers in Indian retail banking. They developed the best
CRM practices which may be helpful to the organizations toward achieving
comprehensive CRM deployment. The study reveals that State Bank of India and Bank of
Baroda are lagging behind their counterparts from other sectors regarding deployment of
the best practices.

Dr. K. Ganesamurthy, (2011) they describe that Customer Retention Management


(CRM) perceives as a technique of banking companies in order to explore, retain and also
increase the loyal customers in the competitive business era. This research paper
attempted to study the customers' perspectives on CRM practices of Commercial Banks
in India, the sample size include 421 respondents from both public and private sector
banks in Tamilnadu, and the study reveals that customers' perception of CRM in banks
does not vary irrespective of different classifications of customers such as age, sex,
education, occupation, income level, the bank in which customers have an account, type
of account, type of account maintained by the customers and the period of customers'
association with banks.

Dr. B.C. Saraswathy in her article has stated that the mail objectives of CRM are
building long term, sustaining relations with customers by delivering superior customer
value and satisfaction. Instead of trying to maximize profit for each every transaction,
CRM focuses on maximizing profits over the lifetime value of customers. Undoubtedly,
CRM is a potential tool in sustaining and boosting sales in this era of hyper competitive
world.

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CHAPTER 3
KEY COMPONENTS OF CRM

3.1 Key Components of CRM

InformationIt is a key raw material for CRM. The key steps include data identification,
marketing data, listing of data and overlay of data.

ProcessCustomer centred processes are the product of CRM

TechnologyIt is the machinery that enables CRM to Work

PeoplePeople are the energy source of the CRM and must be set right for the entire system to
work.

Identification Data Name, address, phone etc

Marketing Data Descriptions, traits, preferences

List data Name and address collected by third party which can be bought or leased

Overlay data Customer profile data collected by a third party which can be leased and
appended to existing customer records

3.2 Key Components of CRM Process

All current and future processes that touch the customer

Touch points or means by which one interacts with customers


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Identifying and eliminating process disconnects and white spaces

Integrating and rationalising processes from the customers point of view

3.3 Key Components of CRM Technology

Software products process automation tools, analysis tools

Networking and integrating applications and databases

Databases, either purchases or home grown

Security features such as encryption tools and firewalls

3.4 Key Components of CRM People

People are reset through various change management tools and support mechanisms

Training and education

New Tools

Measurements and rewards

3.5 KEY CRM PRINCIPLES DIFFERENTIATE CUSTOMERS:

All customers are not equal; recognize and reward best customers disproportionately.
Understanding each customer becomes particularly important. And the same customers
reaction to a cellular company operator may be quite different as compared to a car
dealer. Besides for the same product or the service not all customers can be treated alike
and CRM needs to differentiate between a high value customer and a low value customer.

What CRM needs to understand while differentiating customers is?

Sensitivities, Tastes, Preferences and Personalities-


Lifestyle and age
Culture Background and education
Physical and psychological characteristics

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Differentiating Offerings

Low value customer requiring high value customer offerings

Low value customer with potential to become high value in near future

High value customer requiring high value service

High value customer requiring low value service

1. Keeping Existing Customers

Grading customers from very satisfied to very disappoint should help the organization in
improving its customer satisfaction levels and scores. As the satisfaction level for each
customer improves so shall the customer retention with the organization.

2. Maximizing Life time value

Exploit up-selling and cross-selling potential. By identifying life stage and life event
trigger points by customer, marketers can maximize share of purchase potential. Thus the
single adults shall require a new car stereo and as he grows into a married couple his
needs grow into appliances.

3. Increase Loyalty

Loyal customers are more profitable. Any company will like its mind share status to
improve from being a suspect to being an advocate. Company has to invest in terms of its
product and service offerings to its customers. It has to innovate and meet the very needs
of its clients/ customers so that they remain as advocates on the loyalty curve. Referral
sales invariably are low cost high margin sales.

3.6 Summarizing CRM activities:

The CRM cycle can be briefly described as follows:

1. Learning from customers and prospects, (having in depth knowledge of


customer).

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2 .Creating value for customers and prospects

3. Creating loyalty.

4. Acquiring new customers.

5. Creating profits.

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CHAPTER 4

OBJECTIVES AND CHARACHTERISTICS OF THE CRM

4.1 Objectives of the CRM

1) To examine the opinion of the customers as to CRM of the banks with respect
to service quality management.

2) To analysis the opinion of the customers as to CRM of the banks with respect
to customer interaction management.

3) To study the opinion of the customers as to CRM of the banks with respect to
customer retention management.

4.2 CRM is System

Customer relationship management (CRM) is a system for managing a companys


interactions with current and future customers. It often involves using technology to
organize, automate and synchronize sales, marketing, customer service, and technical
support.

4.3 CRM OBJECTIVES IN BANKING SECTOR

The idea of CRM is that it helps businesses use technology and human resources gain
insight into the behavior of customers and the value of those customers. If it works as
hoped, a business can: provide better customer service, make call centers more efficient,
cross sell products more effectively, help sales staff close deals faster, simplify marketing
and sales processes, discover new customers, and increase customer revenues. It doesn't
happen by simply buying software and installing it. For CRM to be truly effective an
organization must first decide what kind of customer information it is looking for and it
must decide what it intends to do with that information. For example, many financial
institutions keep track of customers' life stages in order to market appropriate banking
products like mortgages or IRAs to them at the right time to fit their needs. Next, the
organization must look into all of the different ways information about customers comes
into a business, where and how this data is stored and how it is currently used. One
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Customer Relationship Management (BMS).

company, for instance, may interact with customers in a myriad of different ways
including mail campaigns, Web sites, brick-and-mortar stores, call centers, mobile sales
force staff and marketing and advertising efforts. Solid CRM systems link up each of
these points. This collected data flows between operational systems (like sales and
inventory systems) and analytical systems that can help sort through these records for
patterns. Company analysts can then comb through the data to obtain a holistic view of
each customer and pinpoint areas where better services are needed.
In CRM projects, following data should be collected to run process engine:

1) Responses to campaigns,

2) Shipping and fulfillment dates,

3) Sales and purchase data,

4) Account information,

5) Web registration data,

6) Service and support records,

7) Demographic data,

8) Web sales data.

The Data warehouse is the core of any decision support system and hence of the CRM. In
implementing its Data Warehouse ICICI Bank has selected an incremental approach,
where the development of information systems is integrated with the business strategy.
Instead of developing a complete design of a corporate Data Warehouse before
implementing it, the bank has decided to develop a portion of the Data Warehouse to be
used for customer relationship management and for the production of accurate and
consistent management reports. Here we are not concerned with the latter goal, but are
concentrating on the former. The Data Warehouse has been designed according to the
IBM BDW (Banking Data Warehouse model) that has been developed as a consequence
of the collaboration between IBM and many banking customers. The model is currently
being used by 400 banks worldwide. The ICICI Bank Data Warehouse is regularly

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Populated both from operational systems and from intermediate sources obtained by partial
preprocessing of the same raw data.

The Analytical Data mart is customer centric and contains the following data:

2. Demographic (age, sex, cultural level, marital status, etc.).

3. Ownership of bank's product/services.

4. Product/services usage (balance, transactions, etc.).

5. Global variables: profit, cost, risk, assets, liabilities.

6. Relationship with the bank: segment, portfolio, etc.

CHARACTERISTICS OF CRM

4.4 Characteristics of CRM Maturity Poor Level

No clear definition of customers

Unrealisable data of customers held in disparate locations

No appreciation of customers desires and expectations

Customer value not measures

4.5 Characteristics of CRM Maturity Average Level

Customer definition exists, but no consensus across the organisation

Relevant but incomplete information

Knowledge of customer preference exists but held in silos

Current value understood but future value not actively considered

4.6 Characteristics of CRM Maturity Excellent Level

Agreed customer definition linked to present and future strategy

Comprehensive customer information within a single view

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Ability to remember and recognize customers and tailor your offering to their preferences

Clear understanding of customer current and potential value.

Relationship management is a customer-oriented feature with service


response based on customer input, one-to-one solutions to customers
requirements, direct online communications with customer and customer
service centers that help customers solve their issues.
Sales force automation. This function can implement sales promotion
analysis, automate tracking of a clients account history for repeated sales
or future sales, and also o-ordinate sales, marketing, call-centers, and
retail outlets in order to realize the sales-force automation.
Use of technology. This feature is about following the technology trend
and skills of value delivering using technology to make up-to-the-
second customer data available. It applies data warehouse technology in
order to aggregate transaction information, to merge the information with
CRM solutions, and to provide KPI (key performance indicators).
CRM in developing and maintaining client relationships.

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CHAPTER 5
MARKETING AND CUSTOMER SERVICE

5.1 Benefits of CRM for Marketing

Improved lead generation by feedback of results and conversion of score

Better lead nurturing to continue a relationship with prospects

Better planning by anticipating customer needs

Personal marketing specifically targeted to the needs of the customer

5.2 Benefits of CRM for Sales

Effectiveness by focusing on the most profitable customers

Better identify customer needs and specific customer requirements

Better scoring opportunities by undertaking at the right time at the right relationships

Effective cross sell of other products on the basis of a better understanding of the customer

5.3 Basis for providing direction for a CRM strategy

Identify the best customers and the worst

Distribute value differently to different customers

Compete on the scope

Focus on Strategic Capabilities

Wining through Customer centric innovation

Measure customer performance

Unlearn and relearn

Redefine the focus

The new competition

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Customer Relationship Management (BMS).

Customer relationship management systems track and measure marketing campaigns


over multiple networks. These systems can track customer analysis by customer clicks
and sales. Places where CRM is used include call centers, social media, direct mail, data
storage files, banks, and customer data queries.

5.4 CRM IN CUSTOMER CONTACT CENTERS

CRM systems are customer relationship management platforms. The goal of the system is
to track, record, store in databases, and then determine the information in a way that
increases customer relations (predominantly increased ARPU, and decreased churn). The
CRM codifies the interactions between you and your customers so that you can maximize
sales and profit using analytics and KPIs to give the users as much information on where
to focus their marketing and customer service to maximize revenue and decrease idle and
unproductive contact with your customers. The contact channels (now aiming to be omni-
channel from multi-channel) use such operational methods as contact centers. The CRM
software is installed in the contact centers, and help direct customers to the right agent or
self-empowered knowledge. CRM software can also be used to identify and reward loyal
customers over a period of time.

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CHAPTER 6
IMPLEMENTING CRM TO THE COMPANY

6.1 The following are general guidelines on implementing a CRM system.

1) Make a strategic decision on what problems you want your CRM system to
address, what improvements or changes it should bring in the business processes
of the organization.

2) Choose an appropriate project manager. Typically IT will be engaged, however


a manager with a customer service/sales and marketing business focus should be
involved, as the impact of the project will be mainly on the business side.

3) Ensure executive sponsorship and top management support.

4) Empower team members with the required authority to complete the tasks.

5) Select the correct implementation partner. They must have both vertical and
horizontal business knowledge, as well as technical expertise.

6) Define KPI's that will measure the project's success

7) Use a phased approach. Work towards long-term enterprise-scale


implementation through a series of smaller, phased implementations

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6.2 SAAS CRM SOFTWARE

Often referred to as "on-demand" software, SaaS based software is delivered via the
Internet and does not require installation on your computer. Instead, you'll generally
access the software via your web browser. Businesses using the software do not purchase
the software, and typically pay a subscription fee to the software vendor.

6.3 SMALL BUSINESS

For small businesses a CRM system may simply consist of a contact manager system
which integrates emails, documents, jobs, faxes, and scheduling for individual accounts.
CRM systems available for specific markets (legal, finance) frequently focus on event
management and relationship tracking as opposed to financial return on investment
(ROI).

6.4 SOCIAL MEDIA

CRM often makes use of social media to build up customer relationships. Some CRM
systems integrate social media sites like Twitter, LinkedIn and Facebook to track and
communicate with customers sharing their opinions and experiences with a company,
products and services. Enterprise Feedback Management software platforms such as
Confirmit, Medallia, and Satmetrix combine internal survey data with trends identified
through social media to allow businesses to make more accurate decisions on which
products to supply.

6.5 NON-PROFIT AND MEMBERSHIP-BASED

Systems for non-profit and also membership-based organizations help track constituents,
fund-raising, Sponsors demographics, membership levels, membership directories,
volunteering and communication with individuals.

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Customer Relationship Management (BMS).

CHAPTER 7
CUSTOMER-CENTRIC RELATIONSHIP MANAGEMENT (CCRM)

7.1 Introduction

CCRM is a style of customer relationship management that focuses on customer


preferences instead of customer leverage. This is a nascent sub-discipline of traditional
customer relationship management; to take advantage of changes in communications
technology.

Customer centric organizations help customers make better decisions and it also helps
drive profitability. CCRM adds value by engaging customers in individual, interactive
relationships.

Customer-centricity differs from client-centricity in that the latter refers almost


exclusively to business-to-business models rather than customer-facing firms.

7.2 FEATURES OF CCRM

Customer-centric relationship management is used in marketing, customer service and


sales, including:

tailored marketing

one-to-one customer service

retaining customers

building brand loyalty

providing information customers actually want

Subscription billing

Rewards

29
Customer Relationship Management (BMS).

7.3 CRM PARADOX

The CRM Paradox, also referred to as the "Dark side of CRM", entails favoritism and
differential treatment of some customers. This may cause perceptions of unfairness
among other customers' buyers. They may opt out of relationships, spread negative
information, or engage in misbehavior that may damage the firm. CRM fundamentally
involves treating customers differently based on the assumption that customers are
different and have different needs. Such perceived inequality may cause dissatisfaction,
mistrust and result in unfair practices. A customer shows trust when he bonds in a
relationship with a firm when he knows that the firm is acting fairly and adding value.
However, customers may not trust that firms will be fair in splitting the value creation pie
in the first place. For example, Amazons test use of dynamic pricing (different prices for
different customers) was a public relations nightmare for the company.

7.4 TRENDS

In the Gartner CRM Summit 2010 challenges like "System tries to capture data from
social networking traffic like Twitter, handles Facebook page addresses or other online
social networking sites" were discussed and solutions were provided which would help in
bringing more clientele. Many CRM vendors offer subscription-based web tools (cloud
computing) and software as a service (SaaS). Some CRM systems are equipped with
mobile capabilities, making information accessible to remote sales staff. Salesforce.com
was the first company to provide enterprise applications through a web browser, and has
maintained its leadership position. Traditional providers have recently moved into the
cloud-based market via acquisitions of smaller providers: Oracle purchased Right Now in
October 2011 and SAP acquired Success Factors in December 2011.
The era of the "social customer" refers to the use of social media (Twitter, Facebook,
LinkedIn, Google Plus, Pinterest, Instagram, Yelp, customer reviews in Amazon, etc.) by
customers. CR philosophy and strategy has shifted to encompass social networks and
user communities.

Sales forces also play an important role in CRM, as maximizing sales effectiveness and
increasing sales productivity is a driving force behind the adoption of CRM. Empowering

30
Customer Relationship Management (BMS).

sales managers was listed as one of the top 5 CRM trends in 2013.

Another related development is vendor relationship management (VRM), which provide


tools and services that allow customers to manage their individual relationship with
vendors. VRM development has grown out of efforts by Project VRM at Harvard's
Berkman Center for Internet & Society and Identity Commons' Internet Identity
Workshops, as well as by a growing number of startups and established companies. VRM
was the subject of a cover story in the May 2010 issue of CRM Magazine.

In 2001, Doug Laney developed the concept and coined the term 'Extended Relationship
Management' (XRM). Laney defines XRM as extending CRM disciplines to secondary
allies such as the government, press and industry consortia.

CRM futurist Dennison De Gregor describes a shift from 'push CRM' toward a 'customer
transparency' (CT) model, due to the increased proliferation of channels, devices, and
social media.

Capterra Inc. Ranked the Top CRM Software Solutions in 2013 based on total number of
customers, total number of users and social presence.

31
Customer Relationship Management (BMS).

32
Customer Relationship Management (BMS).

CHAPTER 8
ICICI BANK

8.1 INTRODUCTION OF ICICI BANK

ICICI Bank is an Indian multinational banking and financial services company


headquartered in Mumbai, Maharashtra. As of 2016 it is the second largest bank in India
in terms of assets and market capitalization. It offers a wide range of banking products
and financial services for corporate and retail customers through a variety of delivery
channels and specialized subsidiaries in the areas of investment banking, life, non-life
insurance, venture capital and asset management. The Bank has a network of 3,820
branches and 11,162 ATMs in India, and has a presence in 19 countries.

ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab
National Bank and Bank of Baroda. The bank has subsidiaries in the United Kingdom,
Russia, and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri
Lanka, Qatar and Dubai International Finance Centre; and representative offices in
United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and
Indonesia. The company's UK subsidiary has also established branches in Belgium and
Germany.

In March 2013, Operation Red Spider showed high-ranking officials and some employees
of ICICI Bank involved in money laundering. After a government inquiry, ICICI Bank
suspended 18 employees and faced penalties from the Reserve Bank of India in relation
to the activity.

33
Customer Relationship Management (BMS).

8.2 HISTORY

ICICI Bank was established by the Industrial Credit and Investment Corporation of India
(ICICI), an Indian financial institution, as a wholly owned subsidiary in 1994. The parent
company was formed in 1955 as a joint-venture of the World Bank, India's public-sector
banks and public-sector insurance companies to provide project financing to Indian
industry. The bank was initially known as the Industrial Credit and Investment
Corporation of India Bank, before it changed its name to the abbreviated ICICI Bank.
The parent company was later merged with the bank.

ICICI BANK LAUNCHED INTERNET BANKING OPERATIONS IN 1998.

ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a public offering
of shares in India in 1998, followed by an equity offering in the form of American
Depositary Receipts on the NYSE in 2000. ICICI Bank acquired the Bank of Madura
Limited in an all-stock deal in 2001 and sold additional stakes to institutional investors
during 2001-02.

In the 1990s, ICICI transformed its business from a development financial institution
offering only project finance to a diversified financial services group, offering a wide
variety of products and services, both directly and through a number of subsidiaries and
affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first
bank or financial institution from non-Japan Asia to be listed on the NYSE.

In 2000, ICICI Bank became the first Indian bank to list on the New York Stock
Exchange with its five million American depository shares issue generating a demand
book 13 times the offer size.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of
ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was
approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of
Gujarat at Ahmedabad in March 2002 and by the High Court of Judicature at Mumbai and the
Reserve Bank of India in April 2002.

34
Customer Relationship Management (BMS).

In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs and
branches in some locations due to rumors of adverse financial position of ICICI Bank.
The Reserve Bank of India issued a clarification on the financial strength of ICICI Bank
to dispel the rumors.

8.3 ACQUISITIONS

1996: SCICI Ltd. A diversified financial institution with headquarters in


Mumbai

1997: ITC Classic Finance. Incorporated in 1986, ITC Classic was a non-
bank financial firm that engaged in hire, purchase, and leasing operations.
At the time of being acquired, ITC Classic had eight offices, 26 outlets,
and 700 brokers.

1998: Anagram Finance. Anagram had built up a network of some 50


branches in Gujarat, Rajasthan, and Maharashtra that were primarily
engaged in retail financing of cars and trucks. It also had some 250,000
depositors.

2001: Bank of Madurai

2002: The Darjeeling and Shimla branches of Grindlays Bank

2005: Investitsionno-Kreditny Bank (IKB), a Russian bank

35
Customer Relationship Management (BMS).

2007: Sangli Bank. Sangli Bank was a private sector unlisted bank,
founded in 1916, and 30% owned by the Bahte family. Its headquarters
were in Sangli in Maharashtra, and it had 198 branches. It had 158 in
Maharashtra and 31 in Karnataka, and others in Gujarat, Andhra Pradesh,
Tamil Nadu, Goa, and Delhi. Its branches were relatively evenly split
between metropolitan areas and rural or semi-urban areas.

2010: The Bank of Rajasthan (BOR) was acquired by the ICICI Bank in
2010 for 30 billion. RBI was critical of BOR's promoters not reducing
their holdings in the company. BOR has since been merged with ICICI
Bank.
8.4 ICICIS ROLE IN INDIAN FINANCIAL INFRASTRUCTURE

The bank has contributed to the set up of a number of Indian institutions to


establish financial infrastructure in the country over the years;

National Stock Exchange - The National Stock Exchange was promoted


by India's leading financial institutions (including ICICI Ltd.) in 1992 on
behalf of the Government of India with the objective of establishing a
nationwide trading facility for equities, debt instruments and hybrids, by
ensuring equal access to investors all over the country through an
appropriate communication network.

Credit Rating Information Services of India Limited (CRISIL) - In 1987,


ICICI Ltd along with UTI set up CRISIL as India's first professional credit
rating agency. CRISIL offers a comprehensive range of integrated
products and service offerings which include credit ratings, capital market
information, industry analysis and detailed reports.

36
Customer Relationship Management (BMS).

National Commodities and Derivatives Exchange Limited - NCDEX is an


online multi-commodity exchange, set up in 2003, by ICICI Bank Ltd,
LIC, NABARD, NSE, Canara Bank, CRISIL, Goldman Sachs, Indian
Farmers Fertilizer Cooperative Limited (IFFCO) and Punjab National
Bank.

Financial Innovation Network and Operations Pvt Ltd. - ICICI Bank has
facilitated setting up of "FINO Cross Link to Case Link Study" in 2006, as
a company that would provide technology solutions and services to reach
the underserved and under banked population of the country. Using
cutting edge technologies like smart cards, biometrics and a basket of
support services, FINO enables financial institutions to conceptualize,
develop and operationalise projects to support sector initiatives in
microfinance and livelihoods.

Entrepreneurship Development Institute of India - Entrepreneurship


Development Institute of India (EDII), an autonomous body and not-for-
profit society, was set up in 1983, by the erstwhile apex financial
institutions like IDBI, ICICI, IFCI and SBI with the support of the
Government of Gujarat as a national resource organization committed to
entrepreneurship development, education, training and research.

North Eastern Development Finance Corporation - North Eastern


Development Finance Corporation (NEDFI) was promoted by national
level financial institutions like ICICI Ltd in 1995 at Guwahati, Assam for
the development of industries, infrastructure, animal husbandry, agri-
horticulture plantation, medicinal plants, sericulture, aquaculture, poultry
and dairy in the North Eastern states of India. NEDFI is the premier
financial and development institution for the North East region.

Asset Reconstruction Company India Limited - Following the enactment


of the Securitization Act in 2002, ICICI Bank together with other
institutions, set up Asset Reconstruction Company India Limited (ARCIL)

37
Customer Relationship Management (BMS).

in 2003, to create a facilitative environment for the resolution of distressed


debt in India. ARCIL was established to acquire non-performing assets
(NPAs) from financial institutions and banks with a view to enhance the
management of these assets and help in the maximization of recovery.
This would relieve institutions and banks from the burden of pursuing
NPAs, and allow them to focus on core banking activities.

Credit Information Bureau of India Limited - ICICI Bank has also helped
in setting up Credit Information Bureau of India Limited (CIBIL), India's
first national credit bureau in 2000. CIBIL provides a repository of
information (which contains the credit history of commercial and
consumer borrowers) to its members in the form of credit information
reports. The members of CIBIL include banks, financial institutions, state
financial corporations, non-banking financial companies, housing finance
companies and credit card companies.

Institutional Investor Advisory Services India Limited (IIAS) - ICICI


Bank has indirectly invested in Institutional Investor Advisory Services,
through ICICI Prudential Life Insurance Company, in IiAS. IiAS is a
voting advisory firm aka proxy firm, dedicated to providing participants in
the Indian market with data, research and commentary. It provides
recommendations on resolutions placed before shareholders of over 300
companies.

8.5 PRODUCTS BY ICICI BANK


POCKETS BY ICICI BANK

In September 2013, ICICI Bank launched a one of its kind app on Facebook 'Pockets by
ICICI Bank' to enable customers to carry out a wide range of financial transactions on
Facebook Customers can access the ICICI Bank app by logging into their Facebook
account and then going to the official ICICI Bank Facebook page, and clicking on the tab
for Pockets by ICICI Bank. The customer then registers online with their debit card
number and PIN, and selecting a new four digit PIN for subsequent logins. Through the
38
Customer Relationship Management (BMS).

app, customers can make payments to friends, recharge prepaid mobile and book movie
tickets. One can also carry out non-financial transactions such as accessing a mini
statement of their savings bank account, getting demat holding statements, opening fixed
or recurring deposit, order a cheque book, stop a cheque payment, upgrade debit card,
among others.

MY SAVINGS REWARDS

ICICI Bank has rolled-out the program 'My Savings Rewards' from 1 September 2012,
where reward points are offered to individual domestic customers for a variety of
transactions done through the savings bank account. Reward points are offered
automatically to customers for activating Internet banking, shopping online/ paying
utility bills with Internet banking and auto-debit from savings account towards equated
monthly installments for home/ auto/ personal loan/ recurring deposit. Customers are
required to maintain a monthly average balance of 15,000 or more.
iWish is a flexible recurring deposit product launched by ICICI Bank for its savings
account customers. Unlike a traditional recurring deposit, iWish allows customers to save
varying amounts of money at any time of their choice. Customers can create several goals
and track their progress on an online interface.

ICICI Bank has developed this product in collaboration with Social Money.

39
Customer Relationship Management (BMS).

GO GREEN INITIATIVE

The Go Green Initiative is an organization wide initiative that moves beyond moving
people, processes and customers to cost effective automated channels to build awareness
and consciousness of our environment, our nation and our society.

GREEN PRODUCTS AND SERVICES


INSTA-BANKING

It is the platform that brings together all alternate channels under one umbrella and gives
customers the option of banking through Internet banking, i-Mobile banking, IVR
Banking. On 22nd September 2014 ICICI Bank launched Four New Next Generation
Mobile Banking Apps.

VEHICLE FINANCE

Auto loans offer 50% waiver on processing fee on car models which uses alternate mode
of energy. The models identified for the purpose are, Maruti's LPG version of Maruti
800, Omni and Versa, Hyundai's Santro Eco, Civic Hybrid of Honda, Reva electric cars,
Tata Indica CNG and Mahindra Logan CNG versions.

CARBON FOOTPRINT CALCULATOR

Inputs include region, user input of the distance traveled in a particular medium of
transport daily, electricity consumed per month and LPG cylinder/piped natural gas used
per month. It calculates the net carbon footprint to create awareness and sensitize people
about the environment. It also shows the world's and India's average carbon footprint.

SUBSIDIARIES
Domestic
ICICI Prudential Life Insurance Company Limited

ICICI Lombard General Insurance Company Limited

ICICI Prudential Asset Management Company Limited

40
Customer Relationship Management (BMS).

ICICI Prudential Trust Limited

ICICI Securities Limited

ICICI Securities Primary Dealership Limited

ICICI Venture Funds Management Company Limited

ICICI Home Finance Company Limited

ICICI Investment Management Company Limited

ICICI Trusteeship Services Limited

ICICI Prudential Pension Funds Management Company Limited

INTERNATIONAL

ICICI Bank UK PLC

ICICI Bank Canada

ICICI Bank Eurasia Limited Liability Company

ICICI Securities Holdings Inc.

ICICI Securities Inc.

ICICI International Limited

8.6 AWARDS

2004
Best Bank in India Award presented by Euro money Magazine
2007
ICICI Bank has been conferred the Euro money Award 2007 for the
Best Bank in the Asia-Pacific Region

ICICI Bank wins the Excellence in Remittance Business award by The


Asian Banker

41
Customer Relationship Management (BMS).

2009
ICICI Bank bags the "Best bank in SME financing (Private Sector)" at the
Dun & Bradstreet Banking awards
2011
ICICI Bank is the only Indian brand to figure in the Brand Z Top 100
Most Valuable Global Brands Report, second year in a row
2012
Airtel, ICICI among 'top 100 global brands'

2013
ICICI Bank has been adjudged winner at the Express IT Innovation Award
under the Large Enterprise category
2014
According to the Brand Trust Report 2014, ICICI Bank was ranked 28th
among India's most trusted brands, a research conducted by Trust
Research Advisory.

42
Customer Relationship Management (BMS).

8.7 CUSTOMER RELATIONSHIP MANAGEMENT (CRM) IN ICICI


BANK

The use of Customer Relationship Management (CRM) in banking has gained


importance with the aggressive strategies for customer acquisition and retention being
employed by banks in todays competitive milieu. This has resulted in the adoption of
various CRM initiatives by these banks to enable them achieve their objectives.

The steps that banks follow in implementing Customer Relationship Management (CRM)
are:

Identifying CRM initiatives with reference to the objectives to be attained


(such as increased number of customers, enhanced per-customer
profitability, etc.),

Setting measurable targets for each initiative in terms of growth in profits,


number of customers, etc. and

Evaluating and choosing the appropriate Customer Relationship


Management (CRM) package that will help the company achieve its CRM

Goals (a comparison of pay-offs against investments could be carried


out during the evaluation exercise).

Customer Relationship Management (CRM) has been deployed in retail banking. The
challenges in managing customer relations in retail banking are due to the multiple
products being offered and the diverse channels being used for the distribution of the
products. Customer expectation from banks can be summed up as:

Any time anywhere service, personalized offers, and lower payouts.

Aggressive marketing and promotions on the part of the banks have resulted in most
customers happily switching loyalties to enjoy better privileges, thereby making the task
of retaining them more difficult for the banks.

43
Customer Relationship Management (BMS).

THE USE OF CUSTOMER RELATIONSHIP MANAGEMENT (CRM) IN BANKING HAS BEEN


ESSENTIALLY DONE FOR THE FOLLOWING PURPOSES:

Targeting customers: It is necessary for banks to identify potential


customers for approaching them with suitable offers. The transactional
data that is generated through customer interactions and also by taking
into account the profile of the customer (such as the lifecycle stage,
economic background, family commitments, etc.) needs to be collated into
one database to facilitate its proper analysis. For example, a customer
interacts with the banks for savings accounts, credit cards, home loans, car
loans, demat accounts, etc. the data generated through all these services
needs to be integrated to enable effective targeting. After the integration
is done, a profitability analysis of the customer needs to be undertaken to
acquire an understanding of the profit-worthiness of the customer before
targeting him with new offers.

Sales reference material: A consolidated information database on all


products, pricing, competitor information, sales presentations, proposal
templates and marketing collateral should be accessible to all the people
concerned. These prove to be very helpful in Sales Force Automation
(SFA) wherein the salesperson gets instantaneous access to all relevant
material as and when it is required (especially when he/she is in a meeting
with a client.)

Consistent interface with customers: The communication to customers


from various departments like sales, finance, customer support, etc. should
be consistent and not contradictory. Therefore, all departments should be
privy to a unified view of the customer to enable a consistent approach.
Removal of inconsistencies is necessary to ensure that customers are not
harassed and frustrated owing to poor internal co-ordination. This is
bound to enhance customer satisfaction. The contact centers used to
interface with customers should ensure consistency in customer
44
Customer Relationship Management (BMS).

interaction, irrespective of the medium used for the interaction such as


telephone, Internet, e-mail, fax, etc.

Banks can use the data on customers to effectively segment the customers before
targeting them. Proper analysis of all available data will enable banks to understand the
needs of various customer segments and the issues that determine value for that
segment. Accordingly, suitable campaigns can be designed to address the issues relevant
for that segment and to ensure higher loyalty from these customers. When data
a n a l y s i s is done in the right manner, it helps in generating opportunities for cross-
selling and up- selling.

45
Customer Relationship Management (BMS).

8.8 BENEFITS OF CRM

Customers usage pattern: ICICIs CRM data warehouse integrates data


from multiple sources and enables users to find out about the customers
various transactions pertaining to savings accounts, credit cards, fixed
deposits, etc. The warehouse also gives indications regarding the
customers channel usage.

New product development: Analysis at ICICI guide product development


and marketing campaigns through Behavior Explorer, whereby customer
profiling can be undertaken by using ad hoc queries. The products thus
created take into account the customers needs and desires, enabling the
bank to satisfy customers through better personalization and customization
of services.

Central data management: The initial implementation of CRM allowed


ICICI to analyze its customer database, which includes information from
eight separate operations systems including retail banking, bonds, fixed
deposits, retail consumer loans, credit cards, custodial services, online
share trading and ATM.

Additional Features of CRM in ICICI Bank:

Most banks have their own databases but because of the huge technological investments
done by ICICI the databases in all the branches are integrated, which means they can be
accessed from anywhere and at anytime. ICICI bank has tied up with Terra data
Company for making their software and is the only bank doing this. The difference can
be known through matching tool parameter. This refers to; on the server of ICICI sum
standards are set in terms of value of the customer and whenever the customer reaches
the set standard, the server automatically informs the department to offer him another
product.

46
Customer Relationship Management (BMS).

Different Channels and Services Offered by ICICI Bank.

Bank Branch, ATM, Phone Banking, Internet Banking, Insta Banking, Mobile Banking,
Call Centre. ICICI Bank offers a host of products and services to its clients, which
include Deposits, Loans, Cards, Investments, Insurance, Demat, NRI Services and Online
Services etc.

The typical components of a CRM strategy at ICICI are as follows:

Understand and differentiate: Understanding customers is important in order to


develop a sound relationship with them. Customer profiling is done in order to
understand demographics, purchase pattern and channel preference. CRM also
helped Extraction, Transformation & Loading, ICICI in valuation of its customers
to understand customer profitability and Customer Life Time Value (CLV)

Develop and customize: - In a customer centric business environment, the


products and processes have to be according to customers needs and preferences.
ICICI has always focused on developing channels of service delivery according to
customers need and service expectation.

Interact and Deliver: To foster a strong customer relationship ICICI ensured that
all areas of the bank have easy access to relevant, actionable customer
information and employees should be trained on how to use customer information
to tailor interactions based on both customer needs and potential customer value.

Acquire and Retain: CRM helped ICICI to figure out valuable customers and
made it easy to formulate retention strategies for them. It also helped it cope up
with the change in customers life cycle and offer services accordingly

(A)AIMS OF CRM IN ICICI BANK

The CRM is a new technique in marketing where the marketer tries to develop long term
relationship with the customers to develop them as life time customers. CRM aims to

47
Customer Relationship Management (BMS).

make the customer climb up the ladder of loyalty.

The company first tries to determine who are likely prospects i.e. the people who have a
strong potential interest in the product and ability to pay for it. The company hopes to
convert many of its qualified prospect into first time customers and then to convert those
first time customers into repeat customers. Then the company tries to convert these repeat
customers into clients they are those people who buy only from the company in the
relevant product categories. The next challenge for the company is to convert these
clients into advocates. Advocates are those clients who praise the company and
encourage others to buy from it.

The ultimate challenge is to convert these advocates into partners where the customers
and the clients work actively together to discover ways of getting mutual benefit.

Thus in CRM the key performance figure is not just current market share but share of life
time value by converting customers into partners.

In CRM the company tries to identify that small percentage (20%) of key account holders
whos contribution to the company revenues is high (80%). So from this point of view,
CRM is also known as KEY ACCOUNT MANAGEMENT

48
Customer Relationship Management (BMS).

ANNEXURES

49
Customer Relationship Management (BMS).

1)Are your needs clearly defined and fulfill by bank?

Options Percentage

Yes 80%

No 20%

20%

Yes
No
80%

Interpretation:
ICICI bank succeeds in understanding the customers needs and problems. 80% of the
customers response positive towards the service provided by the bank and 20% of
customers still need more focus from bank.

50
Customer Relationship Management (BMS).

2)Do they conduct customer satisfaction surveys?

Options Percentage

Yes 60%

No 40%

40%

60% Yes
No

Interpretation:
Surveys conducted by bank regularly. 60% of customers are happy with such survey, were
as 40% of customer thinks that bank doesnt expend time for customer satisfaction surveys.

51
Customer Relationship Management (BMS).

3) Do bank actively seek out customer comments and complaints?

Options Percentage

Yes 90%

No 10%

10%

Yes
No
90%

Interpretation:
The ICICI Bank seeks customer complaints and comments as a priority and 90% of
customers happy with this service of bank. Remaining 10% still complaint about delays
in solving problems.

52
Customer Relationship Management (BMS).

4)How bank get customer comments and complaints?

Options Percentage

Face to face interview. 48%

Toll free numbers. 35%

Formal surveys. 12%

Others means 05%

12% 5%
48% Face to face interview
Toll free numbers
35% Formal surveys
Other means

Interpretation:
ICICI Bank takes initiative to communicate with customers and it was found out that
direct face to face interactions were used maximum by customers for complaints and
comments. Toll free numbers, formal surveys are other ways of communication between
bank and customers.

53
Customer Relationship Management (BMS).

5) Do bank provide credit facility to customers?

Options Percentage

Yes 95%

No 05%

5%

Yes
No
95%

Interpretation:
Banks one of the best offering are credit facilities. ICICI Bank provides the credit
facility to its customers when ever demanded. 95% of customers know about this offering
and takes benefits of it.

54
Customer Relationship Management (BMS).

6) Do bank give concessions or special attention to regular customer?

Options Percentage

Yes 55%

No 45%

45%

55% Yes
No

Interpretation:
It seems like ICICI Bank doesnt discriminate in service providing to new and old
customers. 55% customers says that they get special attention from bank because of long
time attachment were as 45% of customers says there is no difference of service from
bank between new and old customers.

55
Customer Relationship Management (BMS).

7) Do bank take feedback regularly from customers?

Options Percentage

Yes 70%

No 30%

30%

Yes
70% No

Interpretation:
ICICI Bank remains active in taking feedback from customers. Feedback helps them to
formulate new services or improvement in processes. 70% of customers say that bank
take feedback from them were as 30% of customers says they never encountered with
such feedback activity of bank.

56
Customer Relationship Management (BMS).

8) Do bank customize product or services according to the customer?

Options Percentage

Yes 65%

No 35%

35%

Yes
65%
No

Interpretation:
65% of customers say that they get services as they needed from bank were as 35% of
customers complaints that they not get service as they required from bank. ICICI Bank
for its current account holders provides large credit facility and personal call for future
requirements of services from bank.

57
Customer Relationship Management (BMS).

9) Do bank communicate with customers frequently?

Options Percentage

Yes 60%

No 40%

40%

Yes
60%
No

Interpretation:
ICICI Bank always take initiative to communicate with customers and its seems that 60%
of customers take part in that, were as 40% of customers says that bank doesnt take
initiative to communicate with them. Bank needed to review their process because 100%
of customers needed to be cover.

58
Customer Relationship Management (BMS).

10) How much is the role of computers in serving the customers?

Options Percentage

Plays a big role 80%

Not much role to play 19%

No role to play. 01%

1%

19%

Play a big role


Not much role to play
80% No role yo play

Interpretation:
Computers are now playing a major role in banking sector. 80% of customers says that
maximum work needed to be done on computer were as 19% says that without computers
the bank can work but computer needed.

59
Customer Relationship Management (BMS).

11) Is there any improvement in service by bank?

Options Percentage

Yes 90%

No 10%

10%

Yes
No
90%

Interpretation:
The banking sector has changed rapidly from last 10 years, the automation of process has
made the bank activities easier than ever before. In the case of ICICI Bank 90% of
customers says that the services has improved much then before but 10% still says that
services not improved in bank.

60
Customer Relationship Management (BMS).

12) Is there any improvement in customer retention and loyalty


programs?

Options Percentage

Yes 55%

No 45%

45%

55% Yes
No

Interpretation:
A customer retention and loyalty program helps the bank to continue the customer. 55%
of customer says that they are happy with the loyalty programs by bank, were as 45%
customers say that there is no such program to retain the customers.

61
Customer Relationship Management (BMS).

13) Is the working environment is conducive to the well-being and


morale of all employees?

Options Percentage

Yes 85%

No 15%

15%

Yes
No
85%

Interpretation:
According to 85% of customers the working environment of ICICI Bank are good, values
and principles were followed. 15% of customers still feel that the working environment
can be better.

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Customer Relationship Management (BMS).

14) Does the staff have capability and knowledge to solve customer
complaints and problems?

Options Percentage

Yes 75%

No 25%

25%

Yes

75% No

Interpretation:
75% of customers say that the staff know the solutions of the general problems and
complaints, were as 25% of customers say that the staff doesnt aware of the solutions to
the problems and complaints.

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Customer Relationship Management (BMS).

15) regularly?

Options Percentage

Yes 20%

No 80%

20%

Yes
No
80%

Interpretation:
80% of the customers complaint that the bank doesnt disclose the survey results to them,
were as 20% of customers claim that they know the results of surveys provided
information from notice boards and bank portal.

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Customer Relationship Management (BMS).

FINDINGS OF THE STUDY

We can see that the benchmarks set by ICICI are definitely of world class and
clearly values customers precious time, a focused and customer centric approach
helped ICICI Bank become No. 2 bank in India.
ICICI Bank has used CRM not only as a tool but also as a strategy to gain
competitive advantage over other new generation private banks. It has invested a
lot in ICT and spared no pains in giving best to the customers.
Its multi-pronged approach towards managing customer relationship is paying
dividends constantly and as a result we see millions of happy satisfied customers
determined to make it one of the most successful banks in India.
It is identified that the most of respondents are satisfied with CRM. Among
respondents mostly are satisfied with CRM practices.
The study also implies that there is positive correlation between the Customer
interaction management practices, Customer retention management practices,
Customer service strategies, Customer attitude on factors contributing service
quality.
The most important factor which influenced the attitude of customers towards
CRM practices is high safety on the banking transactions.
Thus this study helps the bankers to identify the extent to which they are able to
maintain customer relations and the measures they can take to improve their
relationship.

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Customer Relationship Management (BMS).

SUGGESTIONS OF THE STUDY

Bankers should educate and inform customers about the various services offered
to the customer through customer meets.
Bank personnel should be willing and ready to serve the customers.
Personnel should be knowledgeable and Skillful and the same should be reflected
in their behavior.
Employees should be properly equipped with communication facilities for easy
access.
Awareness programs should be provided and must take effective steps to attract
people of all ages.
Bank employees have to be friendly with customers without diluting the rules and
regulations of the bank.
Banks must introduce new ways and means that makes its customer highly delighted
with its quality of services.
Banks have to identify, analyze and solve the problems faced by the customers while
availing the services within a short span of time to win over the confidence of
customers.
Personnel should be polite, respectful, flexible, friendly and accommodating.
The results of the study reveal that a relevant gap exists between the customers
expectation and customers perception regarding selected CRM practices in banking
industry, which means that in todays competitive environment, customers expectations
are reaching the heights that bankers are unable to predict. To overcome this, banks
have to strive to attract and retain existing and new customers by innovating and
developing differentiated products and services.
Banks should interact or communicate with the customers consistently and take their
feedback with regard to their problems and complaints.

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Customer Relationship Management (BMS).

CRM SOLUTIONS

CRM Solutions come with many features and tools and it's important for a company to
choose a product based on their specific organizational needs. Most vendors will present
information on their respective websites:

Features

These are what the product actually does and what value it can provide to an
organization.

Support

Many CRM vendors have a basic level of support which generally only
includes email and/or access to a support forum. Telephone support is
often charged in either an annual or ad hoc pricing strategy. Some
companies offer on-site support for an extra premium.

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Customer Relationship Management (BMS).

CONCLUSION

From this study it can be concluded that the customer relationship management in Bank
is satisfactory. The Bank is using various CRM practices like customization of the
product, maintaining interaction with the customers regularly and providing good quality
product etc. Customer relationship management has a certain impact on the profitability
of the Bank. Customer response rate towards marketing activities is also improving.
There are various factors affecting the customer relationship management like working
environment of the Bank, support from top management and coordination among the
departments of the Bank. Information technology is used as much as it should be. The
Bank is using traditional as well as modern tools of CRM like quantitative research,
personal interviews, social websites, online services etc.

The present study provides some guidelines for customer relationship management
satisfied customers are loyal customer, their retention rate is much higher and so is their
overall profitability for the bank. CRM offers the most holistic route for banks to enhance
customer relationships. Banks can enhance customer retention, profitability and loyalty
and get an increased share of banks from their customers. Banks need to embrace CRM
as a principle and adopt a strategy for managing customer relationships that effectively
addresses three key areas, customers, processes and technology. Finally banks should
take actions such as recognition and delegation of work, freedom to handle customers
grievances and managements approval to take decision according to the situations.

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Customer Relationship Management (BMS).

Bibliography

Customer Relationship Management, John Wiley & Sons, Inc.

www.icicibank.com

www.crm.insightexec.com

www.crmguru.com

www.searchcrm.techtarget.com

www.Wikipedia.com

Ambastha, Manoj Kumar and Kumari Sunita, (1999). Customer Satisfaction in

Banking Industry

Kotler, P. (1999), Marketing Management: The millennium edition.


Customer Relationship Management (CRM) Best Practices and Customer Loyalty
A Study of Indian Retail Banking Sector http://www.eurojournals.com/ejss.pdf.

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